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Answer question 2 below the image only A village has five residents, each of whom has accumulated savings of $100. Each villager can use the
Answer question 2 below the image only
A village has five residents, each of whom has accumulated savings of $100. Each villager can use the money to buy a government bond that pays 12% interest per year or to buy a year-old goat, send it onto the commons to graze, and sell it after one year. The price of the goat that the villager will get at the end of the year depends on the amount of weight it gains while grazing on the commons, which in turn depends on the number of goats sent onto the commons, as shown in table below. Refer to the information given below. Suppose the self-interested villagers sequentially decide whether to purchase a goat. How many goats will be purchased? Number of Price per Income per goats 2-year old goat goat 1 130 30 2 125 25 3 120 20 4 115 15 D 105 3Step by Step Solution
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